Futures Weekly Wrap (May 24th-30th): Bitcoin holds above $34,000 - Is the worst over?
Cryptocurrencies continue their decline over the past week as the crypto-rollercoaster continues. Bitcoin bulls briefly attempted to rally above $40,000 on May 26, according to data from Tradingview. However, the rally was short-lived as sellers stepped in to push prices down to $33,400 by Sunday. Despite the sell-down, the selling momentum appears less intense than the prior week, indicating a change in investors’ sentiment.The Bitcoin dominance index, which measures Bitcoin’s market value as a percentage to the value of all cryptocurrencies, declined back to 43% as of Monday morning (UTC+8), according to crypto ranking site CoinMarketCap. The index unexpectedly surged to 48% during the crash of May 19 as altcoins suffered greater losses than Bitcoin. Considering the pullback, it seems that capital is starting to flow back into the altcoin markets once again.Bitcoin is changing hands near $34,650 on Monday morning, down by 2.5% from Sunday. The cryptocurrency looks set to post its largest monthly decline since the Covid-Crash, down over 39% on a 30-day rolling basis.Source: TradingviewFrom a technical standpoint, Bitcoin price is well below the 21-day and 55-day exponential moving averages (EMA). This may suggest that current prices are extremely oversold due to the massive liquidation event that imploded almost two weeks ago.Interestingly, the bellwether cryptocurrency appears to be building up a base at $34,000-$35,000. A breakup above $37,500 could confirm the start of a bullish reversal. If that succeeds, the next stage forward for Bitcoin would be to test major resistance levels at $40,000 and $42,000. Despite the recent volatility, long-term bulls remain optimistic about Bitcoin and crypto’s long-term trajectory. The latest prominent investor to adopt crypto is Ray Dalio. The founder of the renowned Bridgewater hedge fund announced his Bitcoin investment, noting Bitcoin’s unique attributes as well as its regulatory risks. Trade Bitcoin, Ethereum, BNB Futures, and many more on Binance. Sign up now!Ethereum (ETH) gained over 14% last week, displaying a resilient recovery from the crash of May 19. While ETH price has not recovered the relative strength that dominated the April-May period, the response to last week’s loss of 41% has been constructive.Source: TradingviewETH has been particularly resilient in comparison to BTC in the last two months. Notably, the ETH/BTC chart resumed its uptrend in the past week, suggesting investors’ preference to own Ethereum at the moment. ETH’s relative strength can be attributed to its strong on-chain metrics. The number of Ethereum addresses holding 0.01 ETH or more has hit an all-time high of 15,710,361, according to Glassnode.ETH’s price has rallied over 50% from the May 19 low at $1,900 and is currently settling in a range between $2,200 to $2,400. If prices continue to surge, a decisive daily close above the 55-day EMA at $2,750 and a breakout above $3,000 would invalidate the bearish thesis. MATIC remains one of the best performers in recent weeks, despite the 70% crash from its peak. MATIC price produced an astonishing recovery of 230% from the May 23 low, forming an inverse head and shoulders base which could propel MATIC to print new highs in the coming days or weeks. Source: TradingviewMATIC’s recovery was accompanied by double-digit up days and strong relative volume, with the inverse head and shoulders pattern forming on a key support zone between $1.5 and $1.7. Once the inverse pattern is complete, MATIC is primed to break out and retest its high watermark at $2.7.The rising reputation of Polygon as a blockchain network with integrated scaling solutions for projects and the recent investment by Mark Cuban will boost MATIC's valuation in the long term.Trade Bitcoin, Ethereum, BNB Futures, and many more on Binance. Sign up now!Major Market Movers on Binance FuturesWith the increased trading activity and volatility, Binance Futures’ perpetual contracts have provided alternative venues for traders and investors to capture trading opportunities.Top GainersTop LosersMATICUSDT (73%) 7-day Vol: 25 BNICPUSDT (-22%) 7-day Vol: 0.8 BNBAKEUSDT (72%) 7-day Vol: 0.9 BNWAVESUSDT (-9.5%) 7-day Vol: $0.52 BNENJUSDT (62%) 7-day Vol: $1.5 BNHBARUSDT (-5.8%) 7-day Vol: $0.23 BN